Order 2011-3-35 

Served: March 30, 2011 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFHCE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 30"^ of March, 2011 

INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES 

Docket OST-2003-14695 

Mainline Quarterly Fuel Adjustment 

Summary 

By this order, the Department is making its regular quarterly adjustments to Intra-AIaska 

Mainline mail rates to reflect the most recent quarterly fuel costs. The new rates are to be 

effective on April 2, 2011, and reflect fuel expenses for the quarter ended December 31, 

2010. 

Background 

Order 2010-8-7 tentatively established final annual Intra-Alaska mainline mail rates. After 

receiving no objections. Order 2010-9-7 finalized those annua! rates, and also updated the 

armual rates in the show-cause order to reflect fuel expenses for the quarter ended June 30, 

2010, the most recent fuel expenses available at that time. We have indicated that we will 

continue to make regular quarterly fuel updates, and most recently Order 2010-12-11 made 

an adjustment. 

This order updates the rates in Order 2010-12-11 to reflect fuel costs for the quarter ended 

December 31, 2010, the most recent data available. The next quarterly fuel update, based on 

data for the quarter ended March 31, 2011, will be effective on or about July 1. 2011. 

We note that Lynden's unit cost per ATM shows a 37.05 percent increase from the 

preceding quarter, which is significantly more than that for any other carrier. We asked 

Lynden to review its numbers, and the carrier indicated that the reason for that apparent 

discrepancy was that it had understated its unit cost per RTM in the preceding quarter. 

Because rates are final and not subject to retroactive adjustment, we will not revise the prior 

quarter's rate, which was understated. 

Pavment Parameter 

LinehauJ, $/RTM 

Linehaul,$/RTM 

Terminal, $/Lb. Enplaned 

Terminal, $/Lb. enplaned 

Service 

Class 

Priority 

Nonpriority 

Priority 

Nonpriority 

Current Rates, 

Order 2010-12-11 

$3.1963 

$1.9350 

$0.36(7 

$0.3108 

Update for 

OE 12-31-10 Fuel 

$3.3191 

$2.0094 

S0.36I7 

$0.3108 

Percentage 

Change 

3.84% 

3.84% 

0.00% 

0.00% 
-2-

ACCORDINGLY, 

1. We make final the rates set forth m Appendix A, effective April 2, 2011, until further 

Department action; 

2. This docket shall remain open until further order of the Department; and 

3. We will serve this order upon all parties on the Service List for this Docket. Persons 

entitled to petition the Department for review of this order under the Department's 

Regulations, 14 CFR 385.30, must file such petitions within ten (ten) days after the date of 

service of this order. The filing of a petition for review shall not slay its effectiveness. 

By: 

TODD M. HOMAN 

Director 

Office of Aviation Analysis 

(SEAL) 

An electronic version of this document is available on the World Wide Web at 

http://www.regulations.gov 
Appendi.\ A 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES 

( I) 

Base Year 

Rates 1/ 

(2) 

Adjustment 

Factors 2/ 

(3) 

Final Rates 3/ 

(4) (5) 

Change from 

CiiiTent Rate 4/ Current Rate 5/ 

Linehaul Charge per Billing Ton-Mile 

Priority 

Non-priority 

$1.1969 

$0.7246 

177.31% 

177.31% 

$3.3191 

$2.0094 

$3.1963 

$L9350 

3.84% 

3.84% 

Terminal Charge per Pound Originated 

Priority 

Non-priority 

$0.1697 

$0.1458 

113.16% 

113.16% 

$.3617 

$.3108 

.3617 

.3108 

0.00% 

0.00% 

1/Per Order 82-11-23. 

2/See Appendix B of this order. Unlike the linehaul charge, the terminal charge will not change from quarter to 

quarter with the quarterly fuel updates. 

3/Column (1) increased by Column (2). 

4/Per Order 2010-12-1 I. 

5/ Any differences between priority and nonpriority elements are due to rounding. 
Appendix B 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES COST ADJUSTMENT FACTORS 

Base Year 

Ended 

9/30/80 

Unit Cost per Available Ton-Mile 

Fuel 

Nonfuel 

Total $0.399469 1/ 

Current 

Costs 

S0.42380 2/ 

$0.64299 3/ 

$1.06679 

New 

Costs 

$0.46476 7/ 

$0.64299 8/ 

$1.10775 

Percentage Change from Base Year 167.05% 4/ 177.31% 9/ 

Unit Cost per Ton Enplaned $191.54 1/ 

Percentage Change from Base Year 

$408.29 5/ 

113.16% 6/ 

$408.29 10/ 

1 13.16% 11/ 

1 / Order 82-11 -23, updated most recently in Order 97-12-24. 

2/ Appendix C of Order 2010-12-11. 

3/ Appendix B of Order 2010-12-11. 

4/ Appendix A of Order 2010-12-11. 

5/ Appendix B of Order 2010-12-11. 

6/($408.29/$19l.54)-I. 

7/ Appendix C of this order. 

8/ Appendix B of Order 2010-12-11. 

9/($1.10775/$0.399469)-I. 

10/ Appendix B of Order 2010-12-11. 

11/($408.29/$ 191.54)-1. 
Appendix C 

Intra-Alaska Mainline Mail Costs - Quarter Ended December 31. 2010 

Fuel 1/ 

Intra-AK Skd. BIk. Hrs. 

Total Block Hours 

Grand 

Total 

$51,187,623 

9,550 

26,066 

Alaska 

Airlines 

AS 

#617 

737-400 

$42,767,691 

6,321 

21,887 

Lynden 

Air 

LAC 

#556 

Hercules 

$1,211,568 

402 

504 

Northern 

Air Cargo 

NAC 

#620 

B-737-200 

$3,932,478 

1.056 

1,583 

Everts Air Cargo 

- -EAC-

#218 

DC-6 

$3,152,749 

1,545 

1.852 

#461 

Brasilia 

$123,137 

226 

240 

Intra-AK Fuel Expense $18,687,136 $12,351,376 $966,370 $2,623,308 $2.630,128 $ 115,954 

Intra-AK Skd. ATMs 

Unit Cost/ATM, Fuel 

Intra-AK Mail RTMs 

RTM Percent of Total 

Wtd. Cost/ATM. Fuel 

45.166,165 

$0.413742 

5,567,719 

100.00% 

$0.46476 

32,512,478 

$0.379896 

1.727.288 

31.023% 

$0.11786 

2,593,249 

$0.372648 

936,677 

16.823% 

$0.06269 

5.297,042 

$0.495240 

1,128.772 

20.274% 

$0.10040 

4,566.832 

$0.575920 

1,690.954 

30.371 % 

$0.17491 

196,564 

.$0.589905 

84.028 

1.509% 

$0.00890 

Intra-Alaska Mainline Mail Ccsts - Quarter Ended September 30, 20(0. Per Order 20IO-(2-I( 

Fuel 1/ 

Intra-AK Skd. Blk. Hrs. 

Total Block Hours 

Grand 

Total 

$48,901,481 

10.689 

27.130 

Alaska 

Airlines 

AS 

#617 

737-400 

$39,656,000 

6,775 

22,065 

Lynden 

Air 

LAC 

#556 

Hercules 

$1,308,481 

414 

755 

Northern 

Air Cargo 

NAC 

#620 

B-737-200 

$4,314,079 

1.530 

1,889 

Everts Air Cargo 

#218 

DC-6 

$3,438,070 

1,588 

2,003 

-EAC 

#461 

Brasilia 

$ 184,851 

382 

418 

InU"a-AK Fuel Expense $19,282,636 $12,176,270 $717,498 $3,494.198 $2,725,739 $ 168,931 

Intra-AK Skd. ATMs 

Unit Cost/ATM, Fuel 

Intra-AK Mail RTMs 

RTM Percent of Total 

Wtd. Cost/ATM. Fuel 

51,069,735 

$0.377575 

5,861,481 

100.00% 

$0.42380 

35.609,725 

$0.341937 

1.718.387 

29.317% 

$0.10025 

2.638,698 

$0.271914 

1,019.823 

17.399% 

$0.04731 

7.748.306 

$0.450963 

1.356,536 

23.143% 

$0.10437 

4,746,885 

$0.574216 

1,641.572 

28.006% 

$0.16081 

326.121 

$0.518001 

125.163 

2.135% 

$0.01106 

Note: 

Data for Alaska, NAC, and EAC are from the T-100 Segment and Form 41 reports. Data for Lynden 

are from special reports filed by the carrier. Alaska's fuel expense is for its domestic region only, 

i.e., it excludes its Latin American division.